Chapter 11 Information Systems Management "I Don't Know Anything About Doing Business in India." • Team discuss outsourcing PRIDE development to India • Ownership of Ajit Barid (“Invincible Cloud”) not known • Successfully developed iOS for iPAD – Can they Android? • Company growing quickly, but is it well managed? • Security, time risks? • Bite the bullet and hire own programmers? Copyright © 2017 Pearson Education, Inc 11-2 Study Questions Q1: What are the functions and organization of the IS department? Q2: How organizations plan the use of IS? Q3: What are the advantages and disadvantages of outsourcing? Q4: What are your user rights and responsibilities? Q5: 2026? Copyright © 2017 Pearson Education, Inc 11-3 Q1: What Are the Functions and Organization of the IS Department? • • • • • Plan use of IS to accomplish organizational goals and strategy Manage outsourcing relationships Protect information assets Develop, operate, maintain computing infrastructure Develop, operate, maintain applications Copyright © 2017 Pearson Education, Inc 11-4 How Is the IS Department Organized? Copyright © 2017 Pearson Education, Inc 11-5 What IS-Related Job Positions Exist? Copyright © 2017 Pearson Education, Inc 11-6 What IS-Related Job Positions Exist? (cont'd) Copyright © 2017 Pearson Education, Inc 11-7 What IS-Related Job Positions Exist? (cont'd) Copyright © 2017 Pearson Education, Inc 11-8 What IS-Related Job Positions Exist? (cont'd) Copyright © 2017 Pearson Education, Inc 11-9 Salaries for Information Systems Jobs Copyright © 2017 Pearson Education, Inc 11-10 Benefits Outweighed by Long-Term Costs Dangers • • • • • Unit fixed cost contract prevents economies of scale Vendor defacto sole source Changing pricing strategy No easy exit (tightly integrated vendor) Difficult to know if vendor well managed Copyright © 2017 Pearson Education, Inc 11-21 Q4: What Are Your IS Rights and Responsibilities? Copyright © 2017 Pearson Education, Inc 11-22 What Are Your IS Rights and Responsibilities? (cont’d) Treat IS dept employees professionally Copyright © 2017 Pearson Education, Inc 11-23 Q5: 2026? • Internal hardware infrastructure moved to the cloud • Ubiquitous mobile devices at work • BYOD policies meet employer needs and strategies • Use of social media in true Enterprise 2.0 style • Social media support project management • IoT provides opportunity for innovation within company Copyright © 2017 Pearson Education, Inc 11-24 Q5: 2026? (cont'd) • IS depts lose control of devices • IS department cultural change – CIO full-fledged member of executive suite – Key player for gaining competitive advantage Copyright © 2017 Pearson Education, Inc 11-25 Security Guide: Selling Privacy • Everything can be tracked, traced, recorded, and distributed around the world in a matter of seconds • Your personal information disclosed to thousands, or millions, of people instantaneously • Privacy violated quickly, private data collected and sold for quick profit Copyright © 2017 Pearson Education, Inc 11-26 Who Watches the Watchers? • 80% concerned about advertisers gaining access to their social media data; • 61% want to keep their data secure • Service providers looking for ways to monetize privacy • GigaPower ( AT&T) – Lower rate, but browsing activities monitored, compiled, and sold for marketing purposes Copyright © 2017 Pearson Education, Inc 11-27 More Than Meets the ISP • Analyze contents of users’ emails and share with government agencies • Offer end-to-end encrypted email service • Data brokers – Acxiom - 1,500 data points for two out of every three people Copyright â 2017 Pearson Education, Inc 11-28 Promoting Privacy Get encrypted end-to-end email service • Premium privacy service from ISP • Use a public computer • Use Tor (The Onion Router) networks • Access your data and sell it Copyright © 2017 Pearson Education, Inc 11-29 Guide: Is Outsourcing Fool’s Gold? • Outsourcing infrastructure advantages and disadvantages • Pay premium for services of former employees, now managed by strangers and paid by vendor • Vendor managers evaluated on how well they follow vendor’s profit-generating procedures • Turn your operation into clone of their other clients • All critical knowledge in vendor’s employees, prohibited from going to work for you • Expensive leap away from responsibility Copyright © 2017 Pearson Education, Inc 11-30 Active Review Q1: What are the functions and organization of the IS department? Q2: How organizations plan the use of IS? Q3: What are the advantages and disadvantages of outsourcing? Q4: What are your user rights and responsibilities? Q5: 2026? Copyright © 2017 Pearson Education, Inc 11-31 Case Study 11: iApp$$$$ U • • • Ideas only as good as their implementation How can you go getting iOS app developed? Cost of creating mobile commerce app = $150K – Programming time cost excluding time for specifying requirements, designing user interface, testing, Apple review process Copyright © 2017 Pearson Education, Inc 11-32 What Are Your Options? • Do as much as you can yourself – Skill in Objective-C or Apple’s Swift • Determine how many SDLC stages you can yourself • Prototype user-interface • Develop a test plan skeleton • Perform some testing tasks yourself • Outsource to US or EU programmer ($30k) Copyright © 2017 Pearson Education, Inc 11-33 What Are Your Options? (cont’d) • Outsource off-shore or hire a computer-science student – Students undependable? • Elance.com – clearing house for iOS development experts – Lists developers and locations, typical costs, ratings by previous customers • Hire developers in India, Russia, the Ukraine, Romania, and other countries ($2000+) • Break big app into smaller, easily doable apps Copyright © 2017 Pearson Education, Inc 11-34 Copyright © 2017 Pearson Education, Inc ... Education, Inc 11- 12 Ethics Guide: Privacy vs Productivity BYOD Dilemma • New committee to provide input for company BYOD policy • Misconception: How to restrict mobile devices to improve productivity... Education, Inc 11- 13 Ethics Guide: Privacy vs Productivity BYOD Dilemma (cont’d) • Company security concerns – Data theft – Malware • Employee security concerns – Personal privacy  Key loggers, monitoring... infrastructure advantages and disadvantages • Pay premium for services of former employees, now managed by strangers and paid by vendor • Vendor managers evaluated on how well they follow vendor’s